Stratics Veteran

It was introduced as part of a chain of in-game events called the Awakening. I think the quest chain is over now but you can read about it here: http://www.uoguide.com/The_Awakening

Act I talks about the City Loyalty thing, ways to gain it, and the rewards and what not. You can buy city banners and a neat city title at certain levels of loyalty. I think the fastest way to gain it was arresting Angry Rioters in towns but I believe those were turned off. I read somewhere that you could still gain by doing some of the other things though like turning in certain items to some special NPC in the city. Supposedly a new system will be introduced in the future involving City Councils or something made up of players and the loyalty ratings will come into play there. I wish I could tell you more but I didn't participate that much in this. I only made it to Baron of Trinsic myself

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